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Notes on the standalone financial statements
for the year ended 31 March 2017
At each balance sheet date, foreign currency monetary items are reported using the exchange rate prevailing at the year
end.
Exchange differences arising on settlement or translation of monetary items are recognised in statement of profit and loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rates at the dates of the initial transactions.
j. Taxes on income
Current tax
Current tax is measured at the amount expected to be paid/ recovered to/from the taxation authorities. The tax rates and
tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Current income tax relating to items recognised directly in equity/other comprehensive income is recognised under the
respective head and not in the statement of profit & loss. Management periodically evaluates positions taken in the tax
returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions
where appropriate.
Current tax assets are offset against current tax liabilities if, and only if, a legally enforceable right exists to set off the
recognised amounts and there is an intention either to settle on a net basis, or to realise the asset and settle the liability
simultaneously.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any
unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available
against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can
be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset
is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at
the balance sheet date. Tax relating to items recognized directly in equity/other comprehensive income is recognized in
respective head and not in the statement of profit & loss.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and is adjusted to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
k. Employee benefits
All employee benefits that are expected to be settled wholly within twelve months after the end of period in which the
employee renders the related services are classified as short term employee benefits. Benefits such as salaries, wages, short-
term compensated absences, etc. are recognized as expense during the period in which the employee renders related
service.
Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered
the service entitling them to the contribution.
The Company’s contribution to the Provident Fund is remitted to provident fund authorities and are based on a fixed